This paper reexamines some general notions regarding the comparison of Cournot and Bertrand equilibrium outcomes. It recasts the Vives (1985) result in a homogeneous product framework and it is shown that the prevailing notion that Bertrand equilibrium involves lower prices and profits than a Cournot equilibrium is not always true, especially when costs are asymmetric.] 1 I am indebted to Anjan Mukherji for :.is paper.
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